The Financial Services Compensation Scheme (FSCS) declared DAC Pensions Limited in default on 16 March 2023.
This nearly two years after Cambridgeshire-based self-invested personal pension (Sipp) operator was placed into voluntary liquidation.
The FSCS said that claims are being assessed by its processing teams on a case-by-case basis, to determine whether each customer is eligible for compensation.
It added: “The FSCS is now able to pay valid claims and we will begin to issue decisions to customers.
“We are mindful customers have experienced a delay while we have undertaken our investigation into DAC and its introducers. We would like to assure you we are committed to providing decisions to customers with claims against DAC as soon as we can.”
The FSCS told International Adviser that it has received 482 claims against DAC Pensions all in relation to Sipps. Four of the claims have been unsuccessful and one claim has been successful. The remaining are all in progress.
According to the Financial Conduct Authority (FCA) register, the firm is still authorised by the regulator.
Investigation
The FSCS opened an investigation on 10 September 2021 and completed its assessment of the UK Sipp operator in February 2023.
The UK lifeboat scheme found that its investigation mainly concentrated on the introducer due diligence undertaken by DAC, prior to accepting business from Elliot Lloyd International (formerly Walker Murray) based in Ireland, and Cyprus-based Woodbrook Group.
At the time of the investigation finishing, the FSCS said Elliot Lloyd International was an active firm.
But according to Open Corporates, the Irish advice company dissolved on 4 March 2023.
IA reported in May 2022 that Woodbrook Group renounced its Cyprus Investment Firm authorisation with the Cyprus Securities and Exchange Commission (CySec) after it was dissolved in October 2021.
Failed firms
Since the start of the year, 22 firms have failed – with two companies under investigation with the FSCS.
The most recent firm declared in default was Portal Financial Services on 15 March 2023.
